Lawmakers Warn Trump: A new tension has arisen in the trade relations between the two countries after US President Donald Trump imposed high tariffs of up to 50 percent on some Indian products. This step of the American administration has not only affected India’s economy, but opposition to it is also increasing within America. Experts and lawmakers say such a drastic decision on tariffs could have a long-term adverse impact on India-US relations, which have been based on cooperation, security and economic partnership for decades. It is also being said that due to increase in trade barriers, the profits of American companies have decreased and due to increase in import costs, there has been additional burden on consumers.

Indian-American MP Amy Bera raised this issue seriously in the US Congress and criticized many policies of the Trump administration. In particular, he termed the additional fee of $100,000 on H1B visa as excessive and impractical. Amy Bera says that this heavy duty is weakening the ability of American companies to include foreign talent in their industries. Given the important role Indian professionals play in Silicon Valley and the tech industry, such a move harms America’s technological edge. He also said that these additional costs hurt small and medium-sized American companies the most, who already face global competition.

Tariff threatens US-India people-to-people connect

Behera also warned that high tariffs and stringent visa policies are not only having an economic impact, but are also harming the people-to-people connect between the two countries. The biggest strength of India-US relations has been people-to-people cooperation, technical exchange and education-trade relations. If it is disrupted, it will directly weaken the long-term strategic partnership between the two countries. In this context, he referred to Prime Minister Narendra Modi’s recent meetings with Russian President Vladimir Putin and Chinese President Xi Jinping and indicated that tough American policies could tilt India towards other superpowers.

Democrat MP Pramila Jayapal widely criticized the tariff policy during her address to Congress. According to him, the high import duty policy of the Trump administration has definitely affected the Indian economy, but due to this, American businesses and consumers are also suffering equally. Due to high import costs, the production of American companies is becoming expensive, due to which the prices of their products are increasing and competition is decreasing. He warned that this situation could pose a threat to America’s economic stability and the health of the market.

Anti-Indian sentiment is increasing in America

Expressing special concern, Pramila Jaipal said that anti-Indian sentiment is increasing rapidly in America in recent years. He says that the tense trade environment between India and America and the strictness of visa policies is further increasing this sentiment. Whereas the reality is that the contribution of Indian-Americans is extremely important in the fields of American economy, education, technology and innovation. Crores of people of Indian origin play an important role in American development through taxes, employment and investment in America, hence such policies are also against America’s own interests.

Talks regarding trade deal have been going on between India and America for a long time. This agreement has been broken once, but now talks have started again. However, uncertainty over this has increased due to rising tariffs and political rhetoric. On the other hand, India has recently reduced the purchase of crude oil from China, due to which America has imposed an additional 25 percent tariff on India. Due to this, geopolitical complications are also increasing in India-America relations. If the tariff war continues, India may gradually lean more towards countries like Russia and the Middle East for energy and trade, which could weaken America’s strategic position in the Asia-Pacific region.

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Giving a big relief to foreign professionals, the US Department of Homeland Security (DHS) has issued new guidelines on the application fee of one lakh dollars for H-1B visa. Many exemptions and exceptions have been included in this. According to the new guidelines, people who are switching from F-1 (student) visa to H-1B visa category will not have to pay this heavy fee. Similarly, this fee will not be applicable on H-1B visa holders who apply for amendment, change of status or extension of visa while staying within the US.

Apart from this, existing H-1B visa holders will not have any restrictions on their travel to and from the country. This fee will be applicable only to those new applicants who are outside the US and do not have a valid H-1B visa. Online payment link for the new application process has also been released.

This clarification has come at a time when the US Chamber of Commerce has filed a lawsuit against the Trump administration against this decision. The organization called this fee illegal and said that it would have a serious economic impact on American businesses and companies would either have to drastically increase their labor expenses or reduce the recruitment of skilled foreign workers.

This is the second major legal challenge against the Trump administration. Earlier, a group of labor unions, education experts and religious institutions had also filed a lawsuit on October 3. Trump had said on this announcement signed on September 19 that its purpose is to encourage employment to American citizens. However, this decision has created confusion among existing visa holders as to whether they will be able to return to America or not.

The White House had told IANS on September 20 that this is a one-time fee, which will apply only to new visa applications and not to renewal or existing visa holders. In 2024, Indian-origin professionals had more than 70 percent share in the total approved H-1B visas. This was due to the huge backlog of cases pending in visa approval and the large number of highly skilled applicants coming from India.

The current Random Lottery System of the H-1B visa is now ready to say goodbye. The Trump government is going to change it to implement weighted selection process, in which candidates will be selected on the basis of skills and salary level. Under the new rules, US Labor Department will distribute all H-1B applications into four salary categories. Those receiving the highest salary (about $ 1,62,500/₹ 1.44 crore annually) will get a chance in the lottery four times, while the lowest salary will be included in the lottery only once, its direct objective is to give priority to high skilled, high paid professionals in the US. This change is a major setback especially for outsourcing companies that bring talent from abroad at low salary. Not only this, the H-1B application fee has also been reduced to $ 100,000 (₹ 88 lakh), which was earlier around ₹ 6 lakhs. This will make the visa process expensive and competitive. These rules will bring major changes in the US labor market and can also become a challenge for Indian IT professionals.

US President Donald Trump has increased the difficulties for India’s IT professionals by increasing the H1B visa fees. Now Indians will have to spend 1 lakh dollars (about 88 lakh rupees) for H1B visa. This decision has made the dream of working in America expensive and concern has increased in India’s IT sector and startups.

What did the Trump administration say?

The Trump administration says that the new ‘Gold Card’ option will help America bring the most efficient professional directly. He argues that the misuse of H1B visa is becoming a threat to American jobs. According to the White House data, in 2003, H1B professionals had 32% IT jobs, which would exceed 65% by 2025.

The new visa fees will think twice before going to the Indian professional America. Experts say that this is both challenge and opportunity for India. Many companies have now reduced their dependence on H1B visas and are increasing recruitment at the local level.

How will India benefit?

Experts in the IT industry believe that the new fees will be forced to return home to the Indian talent working in America. This will increase the flow of skill, experience and capital in India. According to Vivek Wadhwa, CEO of Vionix Biosciences, this will be a financial loss for America but India will benefit.

It is time for the Government of India and companies to increase local opportunities and establish India as a global tech hub. Experts believe that ‘American Dream’ in America will be difficult now, but India will get the benefit in the long time. This change will completely change the scenario of global IT talent and Indian professionals will explore their career and business options under new circumstances.

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The US has increased the H-1B visa fees, after which it was being said that this will affect the most Indian workers. At the same time, former CEO of NITI Aayog, Amitabh Kant said on Saturday (September 20, 2025) that US President Donald Trump’s H-1B visa fees will be damaged by America and it will prove beneficial for India.

He said that this step seems to be like closing the doors for global talents and will help create a wave of innovation, patent and startups in Bengaluru, Hyderabad, Pune and Gurugram.

What did Amitabh Kant say?

This comment by Amitabh Kant, who was a G20 Sherpa, came a few hours after Trump imposed a $ 1,00,000 per annum on a visa for banning the entry of some non-immigrant workers and working in the US.

Donald Trump’s 100,000 H-1B FEE WILL ChOK Us Innovation, and TurboCharge India’s. By Slamming the Door on Global Talent, America Pushes The Next Wave of Labs, Patents, Innovation and Startups to Bangalore and Hyderabad, Pune and Gurgaon. India’s Finest Doctors, Engineers,…

– Amitabh Kant (@Amitabhk87) September 20, 2025

Amitabh Kant said in a post on X, ‘Donald Trump’s $ 1,00,000 million fee H-1B fee will stop US startups and will speed up India’s startups. Closing the door for global talents, the US is pushing the next wave of startups towards Bengaluru, Hyderabad, Pune and Gurugram. He further said, ‘India’s finest doctors, engineers, scientists and newmen have the opportunity to contribute to India’s development and progress in the direction of developed India. America’s loss will be beneficial for India.

The argument behind increasing H-1B visa fees

The Trump administration said that the $ 100,000 fee is to ensure that the people being brought to the country are really highly skilled and do not replace American workers. The H-1B visa is valid for three years and can be renewed for the next three years.

The US President also signed an executive order called ‘The Gold Card’, which aim to set up a new visa route for foreigners with extraordinary capacity who are committed to supporting America.

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American Republican Senator Mike Lee has expressed the possibility of banning the H1B visa. He questioned in response to a post on the social media platform X (Twitter) whether the time has come to stop the H1B visa now? The statement came at a time when a post claimed that an officer of Walmart was given a bribe to give priority to the Indian H1B employees. Mike Lee has become the new leader raising his voice on this issue, which has intensified the ongoing debate on the H1B program in America.

The H1B visa started in 1990 allows American companies to appoint foreign employees in specific businesses. This visa is released for three years, which can be extended to a maximum of six years. Every year the US government issues 65,000 H1B visas, while 20,000 additional visas are given to master or PHD from American universities. India has long been the greatest beneficiary of the H1B visa program, especially for IT and technology professionals.

Partition on H1B in American politics
Recently, partition in American politics on H1B visa is clearly visible. Vice President JD Vance said that large tech companies remove American employees and recruit H1B employees, which is injustice to American professionals. He gave examples that companies are applying for foreign work visas even after taking out thousands of employees. On the other hand, Trump had earlier described the H1B visa as a great program and said that employees with H1B visa holders work in many companies.

USCIS director’s stance and possibility of new rules
Newly appointed director of USCIS Joseph Adlo has said that the H1B visa should be used to complement American economy and workers and not to replace them. According to US media reports, the Trump administration is considering eliminating the H1B lottery system and implementing the salary-based priority system. This means that employees who get high salary will get priority.

Impact on Indian professionals
The largest share in the H1B visa program is Indian IT and technical professionals. Every year thousands of Indian engineers, doctors and researchers go through the US H1B visa. If the rules are strict or banned, it will directly affect India’s IT sector and Indian talent.

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